US Inflation Chart Awaits Trading

#Trading #Awaits #Inflation #Chart

The world of trading is always on the edge, waiting for the next big announcement that could shake the markets. This week, all eyes are on the US inflation data, which is set to be released soon. The European Central Bank (ECB) is also meeting to discuss interest rates, making it a crucial day for traders. As the market awaits these announcements, the EUR/USD pair is trading cautiously, stuck in a narrow range.

The Current State of EUR/USD
The EUR/USD pair has been struggling to break out of its current range, with attempts to recover stalling at the 1.1779 resistance level. The pair then experienced profit-taking, leading to it settling around 1.1690. This cautious trading is expected to continue until the market reacts to the US inflation data and the ECB’s announcement.

What to Expect from the ECB
The European Central Bank is widely expected to keep interest rates unchanged for its second consecutive meeting. The main refinancing rate is set to remain at 2.15%, while the deposit facility rate will stay at 2%. Investors will be paying close attention to the ECB’s post-meeting macroeconomic projections, which will provide updated forecasts for growth and inflation. The ECB had previously cut borrowing costs by 200 basis points between June 2024 and June 2025, with the rate cuts halting in July.

US Inflation: The Big Event
The most important event for forex markets today is the release of US inflation figures. The annual inflation rate in the US is expected to accelerate to 2.9% in August 2025, which would be its highest level since January. On a monthly basis, the Consumer Price Index (CPI) is expected to rise by 0.3%, surpassing the 0.2% increase in July. This rise likely reflects retailers gradually passing on higher import tariffs, along with an increase in gasoline and supermarket prices.

Technical Outlook
As observed on the daily chart, EUR/USD trading remains neutral. The bullish outlook will strengthen if the bulls succeed in breaking the 1.1800 resistance level, which is a key waypoint for a move toward the psychological resistance of 1.2000. The 14-day Relative Strength Index (RSI) is currently near a reading of 52, closer to the neutral line, while the MACD lines also confirm the neutral performance.

Trading Advice
Traders are advised to wait for the market’s reaction to the US inflation and ECB announcements to determine the most suitable trading direction for EUR/USD, whether to buy or sell. With the current uncertainty, it’s essential to stay up-to-date with the latest news and analysis to make informed trading decisions.

Key Takeaways

• The EUR/USD pair is trading cautiously, stuck in a narrow range, as the market awaits the US inflation data and the ECB’s announcement.
• The ECB is expected to keep interest rates unchanged, with the main refinancing rate remaining at 2.15%.
• The US inflation rate is expected to accelerate to 2.9% in August 2025, which would be its highest level since January.
• Traders should wait for the market’s reaction to the announcements before making a trading decision.

In conclusion, the trading world is holding its breath as it awaits the US inflation data and the ECB’s announcement. With the current uncertainty, it’s essential to stay informed and adapt to the changing market conditions. As the market reacts to these announcements, traders should be ready to make their move, whether it’s to buy or sell. Remember, in the world of trading, knowledge is power, and staying up-to-date with the latest news and analysis is crucial to making informed trading decisions. So, stay tuned, and get ready to trade!

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Note: The images used in this article are for illustration purposes only and may not reflect the actual charts or data.